Share

Oil slides after weak US jobs report

Singapore - Oil prices extended losses to below $86 a barrel on Monday in Asia as a dismal August jobs report suggested that a weak US economy will lessen demand for crude.

Benchmark oil for October delivery was down 65 cents to $85.80 at midday Singapore time in electronic trading on the New York Mercantile Exchange. Crude fell $2.48 to settle at $86.45 on Friday.

In London, Brent crude for October delivery was down 75c at $111.58 on the ICE Futures exchange.

Crude has fallen since the Labour Department said on Friday that US employers stopped adding jobs in August and the unemployment rate remained at 9.1%.

Oil had risen from $76 on August 9, the low for the year so far.

"The oil market suffered a severe blow" from the jobs figures, energy consultant Ritterbusch and Associates said in a report. "It reinforced our longer term expectation for a price decline into new low territory."

US gasoline demand during the summer driving season - from May 30 to Monday - fell 4.1% from a year earlier as prices rose 34%, according to estimates by Barclays Capital.

"Gasoline demand has been affected by higher prices and weaker GDP," Barclays said in a report.

In other Nymex trading for October contracts, heating oil fell 2.0c to $2.98 per gallon and gasoline futures dropped 2c to $2.82 per gallon.

Natural gas for October delivery gained 2c to $3.89 per 1 000 cubic feet.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.88
+0.3%
Rand - Pound
23.85
+0.2%
Rand - Euro
20.38
+0.2%
Rand - Aus dollar
12.32
+0.1%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders